BILL NUMBER: AB 2693	CHAPTERED  09/05/00

	CHAPTER   298
	FILED WITH SECRETARY OF STATE   SEPTEMBER 5, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 1, 2000
	PASSED THE ASSEMBLY   AUGUST 21, 2000
	PASSED THE SENATE   AUGUST 18, 2000
	AMENDED IN SENATE   MAY 25, 2000

INTRODUCED BY   Committee on Agriculture (Cardoza (Chair), Maldonado
(Vice Chair), Briggs, Florez, House, Reyes, Thomson, and Wiggins)

                        FEBRUARY 25, 2000

   An act to amend Sections 64101, 64114, 64301, 64320, 64321,
64321.5, and  64322 of the Food and Agricultural Code, relating to
the Dairy Council.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2693, Committee on Agriculture.  The Dairy Council.
   (1) Existing law creates the Dairy Council of California
consisting of not less than a specified number of members who must be
residents of this state.
   This bill would delete the requirement that the members be
residents of this state.  This bill would also increase the per diem
of members from $10 to $100.
   (2) Existing law provides that the Secretary of Food and
Agriculture, upon recommendation of the council, shall establish and
announce the fees for milk used in class 1 and for all other uses to
be paid by producers, producer-handlers, and handlers for the coming
fiscal year.  Under existing law, the fees established by the
secretary shall not exceed a maximum rate to be determined, as
specified.
   This bill would change the maximum rate of fees determined by the
Secretary of Food and Agriculture as specified for class 1 milk and
all other usages of milk.
   (3) Existing law requires the  Secretary of Food and Agricultureto
have a public hearing and, if appropriate, a referendum of the
producers, produce handlers, and handlers of class 1 milk, each 4
years to determine whether the dairy council program should continue.
Existing law also provides a system for winding-up the affairs of
the council if the results of the referendum indicate that the
program should be discontinued.
   This bill would require the Secretary of Food and Agriculture to
comply with these provisions and hold the public hearing or
referendum procedure each 5 years.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 64101 of the Food and Agricultural Code is
amended to read:
   64101.  There is in the state government the Dairy Council of
California which shall consist of not less than 24, nor more than 25
members.  The membership of the council shall be as follows:
   (a) There shall be 12 members that are actually engaged in the
production of milk, or that represent producers that are actually
engaged in the production of milk.  These 12 members are the producer
members of the council.
   (b) There shall be 12 members that are handlers or
producer-handlers of dairy products.  These 12 members are the
handler members of the council.
   (c) Upon the recommendation of the council, the director may
appoint one person who is neither a producer, handler, or
producer-handler, and who shall represent the public generally.
  SEC. 2.  Section 64114 of the Food and Agricultural Code is amended
to read:
   64114.  The appointed members of the council shall receive one
hundred dollars ($100) per day for each day spent in actual
attendance at the meetings or on the business of the council and
shall be reimbursed for necessary traveling and other expenses which
are incurred in the performance of their official duties.
  SEC. 3.  Section 64301 of the Food and Agricultural Code is amended
to read:
   64301.  Annually, prior to the commencement of the fiscal year,
the secretary shall, upon recommendation of the council, establish
and announce the fees for milk used in class 1 and for all other
usages to be paid by producers, producer-handlers, and handlers for
the coming fiscal year.
   These fees shall be established at levels sufficient to finance
the budget for the coming fiscal year as approved by the secretary
pursuant to Sections 64153 and 64154.
   The fee established by the secretary  for class 1 milk shall not
exceed two cents ($.02) per hundredweight of such market milk testing
3.5 percent milkfat and 8.7 percent solids-not-fat.
   The fee established by the secretary for all other usages of milk
shall not exceed eight mills ($0.008) per hundredweight of milk
testing 3.5 percent milkfat and 8.7 percent solids-not-fat.
   The relationship between the fees per hundredweight established
for class 1 milk and for all other usages shall be at a ratio of 2.5
to 1.  These fees shall be the same for producers and handlers.
  SEC. 4.  Section 64320 of the Food and Agricultural Code is amended
to read:
   64320.  (a) Between July 1, 1983, and December 31, 1983, and in
the same period each five years thereafter, the secretary shall, by
the public hearing procedure, and if appropriate, the referendum
procedure provided for in this article, determine whether the council
program provided for in this chapter shall continue in effect.
   (b) If the secretary finds from evidence received at the hearing
that a substantial question exists as to whether the council program
is contrary to or does not effectuate the declared purposes or
provisions of this chapter, the council program shall be submitted to
referendum as provided in subdivision (c).
   (c) If the secretary determines that a referendum procedure is
appropriate, the secretary shall establish a referendum period of not
to exceed 30 days during which period ballots shall be submitted to
all producers, producer-handlers, and handlers on a statewide basis.
If the secretary determines that the referendum period does not
provide sufficient time for the balloting, the secretary may extend
the referendum for an additional period not to exceed 30 days.  The
ballots shall provide a "yes" or "no" voting alternative to the
question:
   "Shall the Dairy Council of California be continued for the next
five fiscal years commencing July 1 following this referendum?"
  SEC. 5.  Section 64321 of the Food and Agricultural Code is amended
to read:
   64321.  If the council program is submitted to a referendum, the
secretary shall find that producers, handlers, and producer-handlers
statewide have assented to the council program if he or she finds
both of the following:
   (a) Sixty-five percent or more of the total number of handlers,
including producer-handlers, voting approve the program.
   (b) (1) Not less than 51 percent of the total number of eligible
producers, including producer-handlers, in the state voted in the
referendum.
   (2) Sixty-five percent or more of the total number of eligible
producers, including producer-handlers, who voted in the referendum
and who produced 51 percent or more of the total amount of fluid milk
produced during the second calendar month preceding the month of the
commencement of the referendum period by all producers who voted in
the referendum approve the program, or 51 percent or more of the
total number of eligible producers who voted in the referendum and
who produced 65 percent or more of the total amount of fluid milk
produced during the second calendar month preceding the month of the
commencement of the referendum period by all producers who voted in
the referendum, approve the program.
  SEC. 6.  Section 64321.5 of the Food and Agricultural Code is
amended to read:
   64321.5.  If the secretary finds that producers, handlers, and
producer-handlers have not assented to the council program pursuant
to Section 64321, the program may be resubmitted to a referendum as
prescribed herein within a period of not less than 60 days and not
more than 180 days after the secretary announces the plan was not
approved.
  SEC. 7.  Section 64322 of the Food and Agricultural Code is amended
to read:
   64322.  (a) If the council program has been submitted to
referendum pursuant to procedures prescribed in Section 64321 and the
secretary finds that producers, handlers, and producer-handlers have
not assented to the program, or if the program is resubmitted
pursuant to Section 64321.5 and the secretary finds that assent is
again not forthcoming, operations of the provisions of this chapter
and of the council shall be suspended commencing July 1 following the
referendum or referendums.
   (b) After the effective date of suspension of the operation of the
provisions of this chapter and of the council, the operations of the
council shall be wound up, and any real and personal property held
in the name of the council shall be liquidated and the proceeds,
along with any and all remaining money held by the council, collected
by assessment and not required to defray the expenses of winding up
and terminating operations of the council, shall be returned upon a
pro rata basis to all persons from whom assessments were collected in
the immediately preceding three months.  However, if the secretary
finds that the amounts so returnable are so small as to make
impractical the computation and remitting of the pro rata refund to
these persons, any moneys remaining after payment of all expenses of
winding up and terminating operations shall be withdrawn from the
approved depository and paid into the State Treasury as unclaimed
trust moneys.
